Manufacturers of corrugated boxes are facing steep increase in cost of raw materials and other inputs and are thus staring at huge losses, according to the Indian Corrugated Case Manufacturers’ Association.
The Indian corrugated box industry, with over 350 automatic corrugators and more than 10,000 semi-automatic units, has seen kraft paper mills increase prices steeply and other conversion input costs spiralling. Overall, there is 18 % to 20 % hike in input costs.
The kraft paper mills say that price of domestic and imported waste paper has increased in the last two months. Since China proposes to ban waste paper imports with effect from January 1, 2021, it is consuming the supplies available now in the global market and this has pushed the prices up. Further, with lockdowns all over the globe due to COVID-19, generation of water paper has fallen. The Indian paper mills could not import adequate volumes during lockdown periods resulting in lower inventory of required grades and shortage in some lower grades.
Sandeep Wadhwa, president of the Indian Corrugated Case Manufacturers Association, appealed to the kraft paper mills to stabilise the prices and to ensure that supply chain in not hampered during the recovery phase. Harish Madan, vice president of the Association, said that unless the box users, including large FMCG brand owners, support the industry, its survival will be difficult.